India’s New Online Gaming Bill
The Government of India introduced Bill No. 110 of 2025, titled The Promotion and Regulation of Online Gaming Bill, in the Lok Sabha. Passed swiftly, the Bill marks shift from the earlier Information Technology Intermediary Rules of 2023. It aims to regulate online gaming but imposes a blanket ban on real money gaming formats. This move threatens the future of Indian online gaming start-ups and foreign direct investment in the sector.
Recent Legislative Context
The Bill was introduced amid ongoing confusion over definitions of gambling and betting by various states. Courts, including high courts and the Supreme Court, have previously overturned state bans on real money games. Despite this, the Bill proposes a comprehensive ban on online games involving any form of monetary stakes. It still encourages e-sports, educational games, and social gaming but prohibits real money gaming operations.
Key Provisions of the Bill
The Bill bans offering, operating, facilitating, advertising, promoting, or participating in online money games. This includes any payment, deposits, or stakes with expectations of monetary returns. It targets games operating across state borders or from foreign jurisdictions. Banks and financial institutions are barred from facilitating transactions related to online money gaming. The Bill establishes an authority empowered to classify games and enforce regulations.
Penalties and Enforcement
Violations attract strict penalties. Operating online money games can lead to imprisonment up to three years and fines up to Rs 1 crore. Advertising such services carries imprisonment up to two years and fines up to Rs 50 lakh. Financial facilitation offences also attract similar punishments. Companies and responsible individuals face prosecution under Clause 11, ensuring accountability at all levels.
Impact on Industry and Economy
The Bill aims to address issues like gaming addiction, debt, fraud, and national security risks. However, it risks harming legitimate Indian start-ups that contribute to tax revenue and employment. The ban could push users towards illegal offshore platforms, increasing unregulated activity. The industry estimates a loss of Rs 20,000 crore in tax revenue and disruption of a Rs 6,000 crore allied sector involving advertising and infrastructure.
Industry Response and Responsible Gaming Initiatives
Gaming bodies like the All India Gaming Federation and Federation of Indian Fantasy Sports have adopted codes promoting responsible gaming. These include age verification, spending limits, self-exclusion, and user education. Voluntary frameworks advocate safeguards over bans. The industry urges the government to consider balanced regulation empowering users rather than imposing blanket prohibitions.
Pending Legal Developments
The Bill awaits passage in the Rajya Sabha and may face legal challenges given past court rulings. A pending Supreme Court case on goods and services tax for online gaming holds potential to redefine the sector’s fiscal framework. Future amendments could address concerns around addiction and financial discipline without stifling innovation and growth.
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